India’s Semiconductor Market Projected to Reach $103 Billion by 2030
India’s semiconductor market is poised for significant growth, with projections indicating an increase from $52 billion in 2024 to $103.4 billion by 2030, reflecting a compound annual growth rate (CAGR) of 13%. This expansion is driven by key sectors such as mobile handsets, information technology, telecommunications, consumer electronics, automotive, aerospace, and defense. Notably, mobile handsets, IT, and industrial applications currently account for nearly 70% of the semiconductor industry’s revenue and are expected to continue as primary growth drivers.
The India Electronics and Semiconductor Association (IESA) emphasizes the importance of innovative research and development (R&D) in high-priority products, including smartphones, hearables, consumer durables, and routers. The association advocates for targeted government incentives for fabrication plants and Outsourced Semiconductor Assembly and Test (OSAT) facilities, alongside increased R&D investments and collaborative industry initiatives, as crucial steps to advance India’s semiconductor sector.
In the past year, IESA member companies have committed over $21 billion in investments, underscoring the industry’s momentum. The association recommends extending the semiconductor incentive scheme beyond the initial $10 billion allocation and revising the design-linked incentive scheme to further bolster the sector.
Additionally, IESA suggests that the government prioritize local value addition, setting targets of 25% by 2025-26 and 40% by 2030 in electronics manufacturing. The report also highlights the need for a unified scheme for product development to drive high-impact semiconductor products and identifies workforce development as a critical area requiring significant attention.
These strategic initiatives aim to position India as a global player in the semiconductor industry, leveraging its talent, expertise, and scalability to meet growing domestic and international demand.
